Putin Backs Bitcoin but Rejects Trump's Approach!

As cryptocurrencies divide global geopolitics, Russia is charting a singular path. Vladimir Putin, while recognizing the intangibility of bitcoin, categorically opposes its integration into national reserves. This position contrasts with that of Donald Trump, a fervent advocate for a crypto-sovereign America. Between technological fascination and strategic caution, Moscow navigates a delicate balance on the digital chessboard.

A strategic caution: gold and the yuan above all

Russia is not betting on bitcoin to secure its economic future. Vladimir Kolychev, Deputy Minister of Finance, made this clear: the National Wealth Fund (NWF) favors physical gold and the yuan.

With 60% of Chinese currencies and 40% of precious metal, Moscow locks its reserves against market turbulence. “Digital assets are too volatile for a sovereign fund,” insists Kolychev. This choice reflects a relentless logic: liquidity takes precedence over the lure of profit.

With 11.97 trillion rubles (122 billion dollars), the NWF represents 5.6% of the projected Russian GDP for 2025. A ratio deemed too low to take risks. “Below 7 to 10% of GDP, any exposure to speculative assets would be irresponsible,” explains the financial expert.

Putin himself tempered enthusiasm in 2021: “Bitcoin has value, but its instability makes it unsuitable for oil trading.”

This distrust is not new. As early as 2017, the Kremlin was regulating cryptocurrencies to limit money laundering. This regulation was strengthened in 2022 by banning crypto payments.

However, behind these barriers lies a more nuanced reality: Russia is discreetly using bitcoin to circumvent sanctions. A paradox that reveals a dual strategy. While Moscow treads carefully on domestic bitcoin, its interest in blockchain reveals a broader ambition.

Blockchain yes, Bitcoin no

Vladimir Putin does not reject the blockchain revolution. His meeting in 2017 with Vitalik Buterin, the founder of Ethereum, attests to this. The Russian president already saw in this technology a lever of influence. A vision that has matured: in 2024, Russia established a legal framework to exploit digital assets… without yielding to speculative frenzy.

“No one can ban bitcoin,” stated Putin in December 2024. A shocking statement that summarizes his philosophy: it is impossible to ignore cryptocurrencies, but imprudent to adopt them without control.

Thus, Moscow encourages blockchain infrastructure to modernize its key sectors (energy, logistics), while stifling their public use. An approach that serves two masters: technological innovation and the stability of the ruble.

On the international stage, bitcoin becomes a circumvention tool. In the face of Western sanctions, Russia uses it for cross-border transactions, especially with Asian or Middle Eastern partners. A discreet but vital tactic to maintain trade flows. Internally, however, the Kremlin remains vigilant: there is no question of allowing cryptocurrencies to threaten its monetary control.

The Russian stance on bitcoin is a skillful blend of realism and distrust. While Trump dreams of American crypto reserves, Putin bets on gold, the yuan, and a domesticated blockchain.